Horizontal price transmission of the Finnish meat sector with major EU players
AbstractThe integration of the Finnish meat market in the EU has important implications for domestic agricultural policy. Our aim is to estimate the characteristics of the Finnish pork and beef markets in relation to those of Germany and Denmark. Our analysis uses symmetric and asymmetric threshold error correction models. Both pork and beef prices in Finland are found to have slowly cointegrated with German prices, but the cointegration relationship of the two counties is only found to be symmetric for pork prices, while it is asymmetric for beef prices. The producer price for pork in Finland is symmetrically cointegrated with the Danish price, but the Finnish and Danish beef prices show a random walk. This implies that the price transmission to the Finnish pork producer market from the EU market is smoother and more efficient than for the beef market. However, the speed of transmission is still slow compared to that between the Danish and German markets.
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Bibliographic InfoPaper provided by MTT Agrifood Research Finland in its series Discussion Papers with number 100215.
Date of creation: Feb 2011
Date of revision:
cointegration; asymmetric; error correction; thresholds; pork and beef prices; Agribusiness; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; International Relations/Trade;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-03-12 (Agricultural Economics)
- NEP-ALL-2011-03-12 (All new papers)
- NEP-EUR-2011-03-12 (Microeconomic European Issues)
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